I wrote an extensive post on this subject under the subject “POH is evil” – See POH is evil?
POH have zero value because it is in your best interest to sell these at minimal profit, or at cost. Why? Because if you’re going to get money, you want it in the form of lot rent and not the “ugly” homes business. The ugly homes business is a great deal of the whole savvy of the business and managing not to lose money rehabbing is a good trick.
The point is, the homes are worth what you can sell then for, after they are habitable and in a condition to appeal to your customer base. That applies for buying homes to bring in to your park as well. Hardly anyone else is going to do that for you.
That leaves you with a value yielding no profit so don’t calculate it in your valuation formula which is designed to valuate a (peaceful) income stream. To the extent your income stream is not “peaceful” that’s where you get a modification to the cap rate of the park to account for how much hassle it is relative to the amount of cash flow it generates.
Does that make sense?